City delays decision to sell Hotel Beaumont

Manuella Libard, Beaumont Enterprise

By Manuella Libardi

Updated 5:58 pm, Tuesday, July 22, 2014

The Hotel Beaumont stands at the corner of Orleans and Fannin streets on Tuesday afternoon. The Beaumont City Council decided Tuesday to postpone the selling of the Hotel Beaumont another week to address concerns by some council members.
Photo taken Tuesday 7/22/14
Jake Daniels/@JakeD_in_SETX
Photo: Jake Daniels

The Hotel Beaumont stands at the corner of Orleans and Fannin...

Council Members Audwin Samuel, ward three, and Jamie Smith, ward four, and City Attorney Tyrone E. Cooper, left to right, listen to discussion of the sale of bonds during Tuesday's meeting. The Beaumont City Council decided Tuesday to postpone the selling of the Hotel Beaumont another week to address concerns by some council members.
Photo taken Tuesday 7/22/14
Jake Daniels/@JakeD_in_SETX
Photo: Jake Daniels

Council Members Audwin Samuel, ward three, and Jamie Smith, ward...

Dr. Alan Coleman, council member for ward one, listens to discussion during Tuesday's city council meeting. The Beaumont City Council decided Tuesday to postpone the selling of the Hotel Beaumont another week to address concerns by some council members.
Photo taken Tuesday 7/22/14
Jake Daniels/@JakeD_in_SETX
Photo: Jake Daniels

Dr. Alan Coleman, council member for ward one, listens to...

Mayor Becky Ames smiles during Tuesday's city council meeting. The Beaumont City Council decided Tuesday to postpone the selling of the Hotel Beaumont another week to address concerns by some council members.
Photo taken Tuesday 7/22/14
Jake Daniels/@JakeD_in_SETX
Photo: Jake Daniels

Mayor Becky Ames smiles during Tuesday's city council meeting. The...

Council Member Audwin Samuel, ward three, brings up some concerns about the sale of the Hotel Beaumont during Tuesday's meeting. The Beaumont City Council decided Tuesday to postpone the selling of the Hotel Beaumont another week to address concerns by some council members.
Photo taken Tuesday 7/22/14
Jake Daniels/@JakeD_in_SETX
Photo: Jake Daniels

Council Member Audwin Samuel, ward three, brings up some concerns...

Council Member Mike Getz, ward two, comments on the revision of an ordinance during Tuesday's meeting. The Beaumont City Council decided Tuesday to postpone the selling of the Hotel Beaumont another week to address concerns by some council members.
Photo taken Tuesday 7/22/14
Jake Daniels/@JakeD_in_SETX
Photo: Jake Daniels

Council Member Mike Getz, ward two, comments on the revision of an...

City Manager Kyle Hayes reaches for documents during Tuesday's meeting. The Beaumont City Council decided Tuesday to postpone the selling of the Hotel Beaumont another week to address concerns by some council members.
Photo taken Tuesday 7/22/14
Jake Daniels/@JakeD_in_SETX
Photo: Jake Daniels

City Manager Kyle Hayes reaches for documents during Tuesday's...

Council Member W.L. Pate, Jr., at-large, comments during Tuesday's council meeting. The Beaumont City Council decided Tuesday to postpone the selling of the Hotel Beaumont another week to address concerns by some council members.
Photo taken Tuesday 7/22/14
Jake Daniels/@JakeD_in_SETX
Photo: Jake Daniels

Council Member W.L. Pate, Jr., at-large, comments during Tuesday's...

Council Member Gethrel Williams-Wright, at-large, left, and Mayor Becky Ames comment during a discussion at Tuesday's meeting. The Beaumont City Council decided Tuesday to postpone the selling of the Hotel Beaumont another week to address concerns by some council members.
Photo taken Tuesday 7/22/14
Jake Daniels/@JakeD_in_SETX
Photo: Jake Daniels

Council Member Gethrel Williams-Wright, at-large, left, and Mayor...

City Council members Audwin Samuel, ward three, left, and Jamie Smith, ward four, listen to explanation of an ordinance on the sale of bonds during Tuesday's meeting. The Beaumont City Council decided Tuesday to postpone the selling of the Hotel Beaumont another week to address concerns by some council members.
Photo taken Tuesday 7/22/14
Jake Daniels/@JakeD_in_SETX
Photo: Jake Daniels

City Council members Audwin Samuel, ward three, left, and Jamie...

Council Member Alan Coleman, ward one, listens to Lee Wheeler, a broker for the city of Beaumont, as he talks about the cash offer to buy the Hotel Beaumont during Tuesday's meeting. The Beaumont City Council decided Tuesday to postpone the selling of the Hotel Beaumont another week to address concerns by some council members.
Photo taken Tuesday 7/22/14
Jake Daniels/@JakeD_in_SETX
Photo: Jake Daniels

Council Member Alan Coleman, ward one, listens to Lee Wheeler, a...

Council Member Audwin Samuel, ward three, speaks after Tuesday's meeting. The Beaumont City Council decided Tuesday to postpone the selling of the Hotel Beaumont another week to address concerns by some council members.
Photo taken Tuesday 7/22/14
Jake Daniels/@JakeD_in_SETX
Photo: Jake Daniels

Council Member Audwin Samuel, ward three, speaks after Tuesday's...

Council members Gethrel Williams-Wright, at-large, left, and W.L. Pate, Jr., right, listen to Lee Wheeler, a real estate broker for the city of Beaumont, talk about the proposed sale of the Hotel Beaumont on Tuesday. The Beaumont City Council decided Tuesday to postpone the selling of the Hotel Beaumont another week to address concerns by some council members.
Photo taken Tuesday 7/22/14
Jake Daniels/@JakeD_in_SETX
Photo: Jake Daniels

Council members Gethrel Williams-Wright, at-large, left, and W.L....

The Beaumont City Council votes to postpone a decision about the sale of the Hotel Beaumont during Tuesday's meeting. The council decided to postpone the sale another week to address concerns by some council members.
Photo taken Tuesday 7/22/14
Jake Daniels/@JakeD_in_SETX
Photo: Jake Daniels

The Beaumont City Council votes to postpone a decision about the...

Council Member Gethrel Williams-Wright, at-large, talks after the council meeting Tuesday afternoon. The Beaumont City Council decided Tuesday to postpone the selling of the Hotel Beaumont another week to address concerns by some council members.
Photo taken Tuesday 7/22/14
Jake Daniels/@JakeD_in_SETX
Photo: Jake Daniels

Council Member Gethrel Williams-Wright, at-large, talks after the...

Council Member Jamie Smith, ward four, talks with others after Tuesday's meeting. The Beaumont City Council decided Tuesday to postpone the selling of the Hotel Beaumont another week to address concerns by some council members.
Photo taken Tuesday 7/22/14
Jake Daniels/@JakeD_in_SETX
Photo: Jake Daniels

Hotel Beaumont, once a downtown destination and later an assisted-living residence for senior citizens until it closed in 2011, will remain empty and purposeless – at least for another week.

Despite having two potential buyers for the 92-year-old building at 625 Orleans St., the majority of Beaumont's City Council members on Tuesday voted to delay the decision to sell until next week's meeting.

The best offer came from Gardens Street Holding, LLC, according to city officials. The California-based company made a cash offer of $1.175 million, which is the asking price.

Because it's a cash offer, there is no financing or third parties involved, said Lee Wheeler, the real estate broker hired by the City of Beaumont to handle the property.

This is the first time the city has used a broker to sell a property, which raised some questions among council members unfamiliar with the process. The usual procedure is for the city to host a real estate auction, said City Manager Kyle Hayes.

Hayes said a broker was hired to handle Hotel Beaumont because brokers have more expertise in dealing with sales of this size.

Councilman Audwin Samuel asked for more time to review the process before agreeing to the sale.

Because there are two buyers involved, Samuel said he wants the week to decide which of the two contracts offered the best deal. He said he doesn't want to just take Wheeler's word.

"If we allow a broker to participate in the process, but the broker is also helping put together the contracts to be presented to council, that allows for some subjectivity on the part of the broker," Samuel said during Tuesday's council meeting.

Councilman Mike Getz encouraged the council not to delay the vote, saying he was concerned Gardens Street Holding, LLC could take the offer off the table.

"Why would we want to run the risk of losing a full value, cash offer for the asking price of the hotel when we know that we can vote on it as it was scheduled to be done," Getz said.

City officials declined to say what Gardens Street Holdings intended to do with Hotel Beaumont if the purchase goes through.

In a previous story, Wheeler told The Enterprise that some potential buyers had said they'd like to turn the building back into a hotel.

Built in 1922, Hotel Beaumont numbers 11 stories and has two ballrooms overlooking downtown.